23rd Sep 2014 09:03
LONDON (Alliance News) - Beacon Hill Resources PLC Tuesday said its pretax loss in the half-year widened on the back of a fall in revenue and slight rise in costs and said it would be focusing on raising financing and restructuring its operations in the second-half with no production anticipated in the period.
The company said its pretax loss in the six months to June 30 widened to USD10 million from USD7.6 million last year. Revenue for the group was down in the period to USD331,000, against USD1.1 million last year and its administrative expenses came up to USD5.1 million against USD4 million in 2013.
The coal company said it is not anticipating any production in the second-half as its Minas Moatize coking coal project remains in care and maintenance until the construction of the expanded washplant is completed. The company said it intends for the project to re-enter production in late 2015 or early 2016.
Beacon Hill said the project has also been hit by the continued weak coal prices globally.
As it is not expecting any production in the second-half of the year, the company said it will focus on securing a new USD20 million senior debt facility to fund its capital expenditure and restructuring its USD25 million in existing senior and sub-ordinated debt. It will also look to raise new equity and working capital of up to USD17 million.
Justin Farr-Jones, Chairman of Beacon Hill, said the company still has a "significant number of hurdles to overcome" and would update on its objectives for the second-half in due course.
Beacon Hill shares were up 3.5% to 0.15 pence per share on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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